Issue - meetings

To consider a report of the Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance.

The report provides the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2019/20 outturn position.

The Cabinet is recommended to:-

·         Note the annual review of Council’s 2020/21 Reserves Policy including the level and rationale for the reserves held;

·         Approve the creation and reclassification of earmarked reserves held in line with the recommended amounts;

·         Note the review of resources to support the Council’s financial response to the COVID19 pandemic over the medium term period if needed and the opportunity cost to the Council of using the resources for this purpose rather than the purpose they were earmarked to be used for;

·         Note the recommendation to use resources held in earmarked reserves to support the Council financial response to the pandemic as a last resort to mitigate the impacts detailed in the report; and

·         Approve the proposed 2020/21 Reserves Policy.

Officer Contact: Jonathan Davies on 0161 218 1025 or email: jonathan.davies@stockport.gov.uk

The Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance (Councillor Tom McGee) submitted a report (copies of which had been circulated) inviting the Cabinet to consider an update on the Council’s Reserves Policy following the reporting of the Council’s 2019/20 outturn position; the 2020/21 Quarter 1 Budget Monitoring Update and the annual review of the Council’s Reserves Policy.

Councillor McGee reported that reserves were used to provide short term budget resilence and to mitigate against unexpected financial presures and that overall the council had a reasonable level of reserves that had allowed it to better weather the pressures associated with the council’s response to the coronavirus panedmeic than some other authorities which had little or no reserves or relied on income.

RESOLVED – That in relation to the Council’s Reserves Policy 2020/21:-

·         the annual review of Council’s 2020/21 Reserves Policy including the level and rationale for the reserves held be noted;

·         the creation and reclassification of earmarked reserves held in line with the recommended amounts be approved;

·         the review of resources to support the Council’s financial response to the COVID19 pandemic over the medium term period if needed and the opportunity cost to the Council of using the resources for this purpose rather than the purpose they were earmarked to be used for be noted;

·         the recommendation to use resources held in earmarked reserves to support the Council financial response to the pandemic as a last resort to mitigate the impacts detailed in the report be noted; and

·         the proposed 2020/21 Reserves Policy be approved.

To consider a report of the Corporate Director, Corporate and Support Services and Cabinet Member for Resources, Commissioning & Governance

The report provides the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2019/20 outturn position.

The Scrutiny Committee is invited to comment on the report.

Officer Contact: Jonathan Davies on 0161 218 1025 or email: jonathan.davies@stockport.gov.uk

The Cabinet Member for Resources, Commissioning and Governance submitted a report of the Corporate Director, Corporate and Support Services (copies of which had been circulated) providing the outcome of the annual review of the Council’s Reserves Policy following the reporting of the Council’s 2019/20 outturn position.

The following comments were made/issues raised:-

·         The information on the earmarked reserves as a percentage of total expenditure from the other local authorities in Greater Manchester was welcomed.

·         The Scrutiny Committee needed to review the Cabinet One-Off Investments /Medium Term Financial Plan Reserve on a regular basis and Members requested more detail on the use of these resources.

·         The Capital Investment Reserves outlined in paragraph 4.2 of the report on Strategic Priority Reserves did include resources set aside to meet the expected capital costs linked to the Town Centre and District Centre regeneration projects.

·         The inclusion of the governance of the Approvals Process outlined in paragraph 5 of the report was useful information.

RESOLVED – That the report be noted.